The profit margin of the Russian northern steel industry has dropped to a 16-year low.

One of Russia's main steel producers, Severstal, announced that its profit margin has dropped to the lowest level in 16 years, due to the domestic economic slowdown putting pressure on demand. The company stated on Tuesday that its pre-tax profit for 2025 fell by 42% year-on-year to 137.6 billion rubles, with a 14% decline in revenue during the same period. The EBITDA profit margin dropped to 19%, the lowest level since 2009. Historically, Russia's major steel companies have been among the most profitable producers globally, with profit margins rarely falling below 30% over the past decade. CEO Alexander Shevelev stated: "Under the pressure of high interest rates and economic cooling, Russia's steel demand has significantly declined." He noted that steel demand has dropped by 14% year-on-year, dragging down prices for steel products.